Key Highlights

  • AST SpaceMobile posted a small gain with no company-specific news, moving with the broader space sector.
  • SpaceX climbed the same day after Morgan Stanley reiterated an Overweight rating and $300 price target.
  • Rocket Lab slipped even as SpaceX rallied, showing the space group did not move in lockstep.
  • AST SpaceMobile is still building out its satellite network, so its shares often trade on sector sentiment.

AST SpaceMobile shares inched up on Monday with no company-specific news, as SpaceX climbed and the rest of the space group traded unevenly.

A Quiet Gain in a Noisy Sector

AST SpaceMobile (NASDAQ:ASTS) nudged higher on Monday, Oct. 5, posting a small gain on the Russell 1000. No company-specific news was found to explain the move. Instead, the stock moved with the broader space sector on a day when SpaceX grabbed the headlines.

The group did not move in lockstep. SpaceX climbed, AST SpaceMobile inched up and Rocket Lab (NASDAQ:RKLB) slipped.

What AST SpaceMobile Does

AST SpaceMobile is building a network of large satellites designed to connect directly to ordinary mobile phones, without special hardware. The idea is to Fill coverage gaps in remote areas by partnering with mobile carriers, which would use the satellite network to extend their service.

The company is still in its build-out phase, so its share price often trades on sentiment toward space and satellite communications rather than on current earnings. That can make it swing with headlines about larger players in the industry, even on days with no news of its own.

SpaceX Set the Tone

SpaceX climbed on Monday, though reports differed on how far. Morgan Stanley's Adam Jonas reiterated his Overweight rating and $300 price target, calling the stock cheap and getting cheaper. There were also reports that SpaceX renamed its AI unit, though other sources could not confirm that detail.

Separately, Musk confirmed early talks with Taiwan Semiconductor (NYSE:TSM) about joining Terafab, his Texas chip-manufacturing venture, saying just discussions, but something may come of it. Earlier in the day, SpaceX completed three launches in 13 hours.

When a sector leader rallies, smaller peers sometimes get a lift as investors revisit the theme. On Monday, that effect was muted for AST SpaceMobile and absent for Rocket Lab.

There was other news in the wider group, too. Kratos Defense (NASDAQ:KTOS) won multiple contract awards for space intelligence and cyber missions, while Redwire (NYSE:RDW) fell despite a follow-on Axiom Space contract for two solar array wings. Boeing (NYSE:BA) received a contract action worth about $14.7 billion from Lockheed Martin (NYSE:LMT) to triple production of PAC-3 MSE missile seekers.

The Broader Market

Elsewhere, tech led. The Nasdaq Composite climbed 286.45 points to a record 27,477.31, and the Nasdaq-100 also closed at a record. The S&P 500 rose 51.23 points to 7,773.95, just shy of its summer record, and the Dow added 90.94 points to 51,267.90.

Rates were a mixed blessing. Friday's weak September jobs report, which showed payrolls rising by just 29,000, cut bets on another Fed rate hike in October. But the 10-year Treasury Yield climbed to its highest level since 2002, and the ISM services survey showed prices paid at their highest since July 2022. Companies still spending heavily to build out their networks tend to be sensitive to the cost of money.

One market analyst summed it up, saying Growth Stocks were rallying because Fed expectations had softened, while the Risk-Free Rate against which those valuations are judged remained exceptionally high.

What to Watch Next

With no company news on Monday, AST SpaceMobile's next moves may again follow the sector and the rate outlook. The Fed releases minutes from its September meeting on Wednesday, Oct. 7, at 2 p.m. ET, and the Fed's next policy meeting runs Oct. 27-28.

For the company itself, investors will watch its next Quarterly Report for progress on satellite deployment and carrier partnerships.